Mahindra buys British motorcycle brand BSA for INR 28 crore
In what is an interesting news, Mahindra Two Wheelers Ltd. (MTWL) which is struggling to keep up pace with its rivals in the domestic market is on an acquisition spree. The objective appears to be boosting its brand value in the two wheeler space by bringing heritage rich international brands under its wings.
Roughly a year ago, Mahindra acquired 51% stake in France’s Peugeot Scooters thereby gaining access to their product portfolio, global distribution network and technologies.
Now, it has emerged that the two wheeler arm of Mahindra, has bought the iconic British motorcycle brand – BSA. BSA was founded in early 1900’s while the Norton’s origin traces back to 1898. Since the 1970s, the brand BSA has been defunct. Mahindra bought BSA via their firm called Classic Legends Pvt. Ltd.
This latest acquisition of India’s Mahindra will allow them to acquire/obtain licence of BSA motorcycles, and utilize the same for selling, marketing, distributing motorcycles globally. Mahindra has acquired all 120,000 shares of BSA motorcycles at £28.33 per share. This means, a total value of approximately £3400,000, or Rs28 crore. With a presence in Japan, Canada, Mexico, Malaysia, Singapore, BSA had a turnover of £28,233 in fiscal 2015-16.
Apart from BSA, Mahindra is reportedly in talks with many other British motorcycle brands. One of them is Norton. Norton was revived by a UK businessman in 2008 and is currently specializing in low volume retro classic motorcycles.
As of now, both BSA and Norton has nothing concrete to offer in terms of technology or products but they do enjoy a very positive brand recall among motorcycling enthusiasts circle across the world. But with Mahindra on an acquiring spree, future could see these brands on roads across the world.
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